How Long Can I Stay Out of Canada Without Losing My OAS?

The Old Age Security (OAS) pension is a fundamental part of retirement income for Canadians aged 65 and older. However, many retirees wonder how long they can stay outside of Canada without jeopardizing their OAS benefits. This article will explore OAS eligibility requirements, how payments work for those living abroad, and what happens if you stay outside Canada for an extended period.

Understanding Old Age Security (OAS)

The Old Age Security (OAS) pension is a monthly payment that most seniors in Canada receive once they turn 65. Unlike the Canada Pension Plan (CPP), OAS is not based on employment history but rather on residency in Canada.

In most cases, Service Canada automatically enrolls eligible individuals for the OAS pension. If you did not receive a letter confirming your enrollment after turning 64, you may need to apply.

Do You Qualify for OAS?

To qualify for the OAS pension, you must meet the following requirements:

If You Are Living in Canada:

• Be 65 years or older
• Be a Canadian citizen or legal resident at the time your OAS application is approved
• Have resided in Canada for at least 10 years since the age of 18

If You Are Living Outside Canada:

• Be 65 years or older
• Have been a Canadian citizen or legal resident on the day before you left Canada
• Have resided in Canada for at least 20 years after turning 18

How Long Can You Stay Outside Canada Without Losing OAS?

If you have lived in Canada for at least 20 years after age 18, you can continue receiving OAS payments even if you move abroad permanently. However, if you do not meet this requirement, your OAS payments will stop after six months of being outside Canada.

Key Rules for OAS Payments Outside Canada:

• If you qualify for OAS based on the 20-year residency rule, you will continue receiving payments regardless of where you live.
• If you do not meet the 20-year residency rule, your OAS will stop six months after the month you leave Canada.
• If you return to Canada, your payments can resume once you meet the eligibility criteria again.

Special Cases: Canadians Working Abroad

If you are working abroad for a Canadian employer, such as the Canadian Armed Forces, a Canadian bank, or another official Canadian organization, you may still be considered a resident of Canada for OAS eligibility purposes. To qualify, you must:

• Return to Canada within six months of ending employment
• Provide proof of employment and proof of returning to Canada
• If you turned 65 while still employed abroad, you may still qualify without needing to return immediately

Receiving Your OAS Pension While Abroad

If you qualify for OAS payments while living abroad, you will continue receiving them through direct deposit in your local bank account. However, keep in mind:

• OAS payments are considered taxable income
• You may be subject to non-resident tax withholdings if you live outside Canada

Guaranteed Income Supplement (GIS) and Living Outside Canada

The Guaranteed Income Supplement (GIS) is a benefit available to low-income OAS recipients. However, GIS payments stop if you are outside of Canada for more than six months. This applies even if you qualify to receive OAS while living abroad.

Taxes and OAS Payments for Non-Residents

OAS payments are subject to income tax, whether you live in Canada or abroad. If you are residing outside of Canada, you will receive an NR4 tax slip for non-residents instead of the standard T4 tax slip.

How to Access Your Tax Slips Online

You can obtain copies of your tax slips through:

• My Service Canada Account
• Canada Revenue Agency (CRA) My Account

What Happens If You Stay Out of Canada for More Than Six Months?

If you do not qualify to receive OAS while outside of Canada (i.e., you have not met the 20-year residency requirement), your OAS payments will stop six months after the month you leave Canada.

Example:

• If you leave Canada in January, your OAS payments will continue until the end of July.
• After that, your payments will stop unless you return to Canada.

Reporting Absences to Service Canada

If you plan to be away from Canada for more than six months, you should notify Service Canada to avoid overpayments. The government compares records with Canada Border Services Agency (CBSA) and may require repayment if they determine you were ineligible for payments.

Restarting OAS Payments Upon Returning to Canada

If your OAS payments were stopped due to extended time abroad, you can restart them upon returning to Canada. To resume payments, you must:

• Contact Service Canada and provide proof of your return
• Meet the residency requirements again

Additional Considerations

If You Are Incarcerated

Your OAS payments will stop if you are serving a sentence of two years or more in a federal prison. Payments resume once you are released and inform Service Canada.

If a Beneficiary Dies

If you are managing the affairs of a deceased OAS recipient, you must notify Service Canada immediately to avoid overpayment.

Conclusion

The ability to receive OAS payments while living abroad depends on your residency history in Canada. If you have lived in Canada for at least 20 years after age 18, you can receive OAS payments indefinitely outside of Canada. Otherwise, your payments will stop after six months of absence. To ensure continued payments, it’s essential to keep Service Canada updated on your status and comply with tax regulations.

For more information or to update your OAS status, visit Service Canada’s website or log into your My Service Canada Account.

Take Control of Your Retirement

Planning for retirement involves more than just understanding OAS benefits. A solid financial plan can help you maximize your income and secure your financial future.

📞 Book a consultation with a Certified Financial Planner today to ensure you’re making the most of your retirement income.

📖 Get your copy of “The Art of Retirement” to learn expert strategies on how to create a stress-free and financially secure retirement. Click [here] to purchase your copy now!